Costco Confirms First Membership Price Hike in 7 Years
After teasing plans to raise its membership fees for more than a year and a half, Costco has finally announced when the long-anticipated price increase will take effect.
On Sept. 1, the annual fee for Costco's basic Gold Star membership tier will go up from $60 to $65, while the fee for the higher Executive membership tier will increase from $120 to $130. The change is slated to roll out in both the United States and Canada.
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"The fee increases will impact around 52 million memberships, a little over half of which are Executive," Costco said in a press release on July 10.
One key perk of the pricier Executive membership is an annual 2% reward on qualifying Costco purchases. Due to the fee hike, Costco will raise the maximum reward Executive members can earn from $1,000 to $1,250.
The upcoming fee increase will be the first since 2017, when the Gold Star membership went from $55 to $60 and the Executive membership went from $110 to $120.
Costco executives have been saying that another fee hike is "a question of when, not if" since at least as far back as December 2022. However, the company has been holding off on the move because business has been healthy, and leaders have wanted to provide extra value for customers in the face of inflation.
"We are still evaluating those considerations to determine what the right timing is. And when we reach that point where we feel it is the right time, of course, we'll be very open and direct in communicating that," Costco CFO Gary said during a May earnings call.
Inflation and rising prices have become a touchy subject among consumers lately, so it should come as no surprise that some Costco members were frustrated by the fee hike news.
"I urge everyone not to renew your membership," one shopper wrote in a Reddit thread on the rate increase.
Still, many Costco members weren't all that bothered by the news that their membership dues would get more expensive come September.
"It's a nominal hike and they've held the line for a while. It's good for the company and does very little harm to the consumer [in my honest opinion]," a customer commented on a Reddit post.
"As long as they don't change the price on that $1.50 hot dog and soda, I'm fine," another wrote.
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